4. Easy To Do Business Everywhere Clearly , Alibaba’s Group mi ssion is to make it easy to do business everywhere. Before this company came along, sales channels are very inadequate for local SMEs in China. Trade exhibitions that are conducted to introduce and demonstrate the latest products for more opportunities were very costly. There are very limited customers that the sales team could reach out at that moment. However, many SMEs are seeking for business opportunities and growth since the economic reform of Reform and Open policy that opens up the investment to foreign country (Tisdell, 2009). Therefore, the technology provided by Alibaba has given SMEs in China huge advantages and benefits. First of all, China has no geographical constraint that gives China SMEs a huge market of e-commerce. Next, the well set up e-commerce environment helped the transaction cost to go down sharply. On the other hand, the e-commerce business platform is also incorporate into the regular business cycle and give suppliers and buyers more ac curate and relevant information that ever before. In a nutshell, Alibaba’s e - commerce technology has made it so much convenient to SMEs to conduct their business anywhere in the world efficiently. According to BBC, the total value of merchandise sold in Alibaba in 2013 was far more than Amazon and eBay combined. Alibaba has a clear mission which is to make it easier to do business across the world because it insists that customers come first, company second and shareholder third. Today, customer is far more powerful than others (McGovern, 2014). Besides providing free of charge online e-commerce platform to both clients and consumers, Alibaba also brings in pay-per-click (PPC) ad campaign in order for suppliers to build
4 their business (Yang, 2010). By adding up together all the interested suppliers in various TradeFair, Alibaba has largely reduced the cost of each supplier. At the same time, Alibaba also helped evaluate market data for suppliers to better forecast their own business demand. This allows them to charge a small fee to the suppliers that are more than willing to pay at a discount price as the need for marketing and sales from millions of suppliers together. This has made Alibaba successfully in capture the value shaped to the sellers who are price sensitive but less demanding of the service quality. Alibaba also argues that developing a good strategy is not easy as we think especially in such a fast changing world. Therefore, its mission is about making business easy for everyone (McGovern, 2014). 5. Credit Worthiness Alibaba develop a payment instrument named Alipay in China which contributed a part of the success of Alibaba. Before the emergence of Alipay, many sellers felt insecure to ship goods to the buyer due to many reasons until the buyers has clear off the payment. However, when Alipay has been introduced in Alibaba, this credit system has been very much lessens the risk of e-transactions and ease buyers and sellers concern upon failure of delivery or delivery of fake and damaged products. Alibaba has not only introduce Alipay but also
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- Marketing, Alibaba, Alibaba Group, Alibaba.com